Assigning question

I think that for the various reasons properties are put up for sale- CASH at closing decides. In truth sellers are being offered a way out and to move forward with their life's decisions. Investors give them the means to pursue their tomorrow. At least thats wht i Think. The end buyer could well be a retail buyer. There u go.

Hi so i havent done my first deal yet but i have a buyers list, found a title company comfortable with assignments, and now i am looking for houses (fsbo's). i would like to do it the easier way where i could have an agent look for the homes and put in the offers 30-60% below fmv! has anyone had success with real estate agents and assignments?

Can I say more.

That is the biggest reason investors are alive. People, companies, banks all have motivation.

I have a friend that has bought a number of deals from investor partnerships breaking up because of bad business. They are investors and they are so fed up they just want to dump their properties. You just need to be in the market when that comes available otherwise someone else is going to pick it up.

I heard a quote "A once in a life time deal comes available every week" it is because there is going to be motivation in every market anytime

Mikessler
Keep Moving Forward!!!

I learned so much.Read both books and ready to make my move.I tryed \EVERY STRAGITY IN assigmnts,felt confident to try that first ( fit my griteria,,,,except Assigmenmts aren'an option where i LIVE, because of so much fradulant accitivity in Las vegas,Alot of arrests have been made in this area,so they just don;t do them,WELL THAT REALLY BURST MY BUBBLE/I had to REVIEW ALoptions options.turns out I met sn envestor throught this site,With nothing to loose I jumped on board.I was baciscally birddoging for him.Lookingg only for shortsales 50000to 1 mllion.I ,each sale the investor would purchase would profit 2000. OPPERTUNITY..MUCH alotof effort and time invested,againAND EFFORT,NOTHING.....nOW i'M STARTING FROM SCRATH AGAIN .iHOPE i CAN DO IT THIS TIME PLEASE WISH ME LufK....tHANKYOU SINCERELY lIANE

What contracts do you use to do an assignment. I need a complete list of everything needed to finish this deal.

You can also ask them what kinds of services they can offer you as far as farming.

My title rep is sending me mailing labels for my postcards for the cash buyers for the last six months in my target zone and labels for the absentee owners. She has also given me access to some of her computer programs so that I can put in a property address and it will give me a complete profile of the property and all the comps.

They want YOUR business, too, so let them tell you what they can do for you.

Karen

You are talking about a couple of different things here. If you are working with FSBOs, you don't use an agent. You make the offers yourself. You write them up on a contract and submit them to the buyer yourself. The purpose of FSBOs is to cut out the commission that would be paid to an agent. This is the best way to wholesale.

Now, you can work with an agent. I actually have an wonderful agent, but you don't usually find your best deals that way. And you still have to do a lot of the work when you are working with them also or you won't keep one for very long. You give your agent your basic criteria and they pull a list for you. It is up to you to go through that list looking for the houses that have potential and deciding which ones you want to make offers on.

You also have to know how much discount is reasonable to ask for in your area. 60% is VERY low. Even at wholesale, are properties actually being sold that much below ARV in your area of CA? Get familiar with the area as far as pricing, etc, so that you will be taken seriously. Drive your streets and get familiar with what properties have recently sold and for what amounts? Drive by them to see what kind of condition they are in to have gotten the price that they did. It takes a little time and a lot of work but you will get it.

But be forewarned. There isn't an easy way.

Best of luck to you.

Karen

Tina (Tina1) is doing a LOT of business in Las Vegas. Have you tried talking with her? Maybe she could give you some pointers.
She is on this thread actually. Post #390.

Karen

If you are doing a wholesale deal, you need a Purchase Agreement to get the property under contract with the seller.

Then when you find a buyer, you use an Assignment Agreement.

That's it.

Karen

It doesn't matter if it is listed with more than one agent. All that matters is YOUR contract. When you make your offer and he puts your name in "Buyer" tell him to put "Created4more and/or assigns" on that line because you haven't decided yet if you are going to put the property into you LLC or into your partner's name. PERIOD.

Do not tell him you will be selling your contract!!! Not his business!!!

After your contract has been accepted, you can still use your Assignment Agreement and assign your contract to whoever you want.

Karen

First of all, you need to find out if your state does their closings through title companies, escrow companies or attorneys. Different states, different rules.

Titles are not tied to any particular title company. If you are using a realtor, they often have title companies that they use often, but if you have a relationship with one you can put in the contract that you want to use yours. That is always negotiable. Everything is negotiable.

If you are doing a deal with a FSBO, odds are they will not be familiar with one, so yes, you can just walk into a title company with your paperwork.

Call a local title company or escrow company and ask them how it is done in your state.

Best of luck to you.

Karen

Hi everyone! I read Dean's book"30 Days to Real Estate Cash," will check the legality of "Assignment Contracts" in Tennessee. In the mean time, my question is this. If I get a seller to sign to sell knowing that I may reassign to a "committed buyer" do I really need a real estate agent to close up the deal? Right now this is where i'm confused. Oh by the way did I mention that I to am a "newbie?"

Shhhh! We don't like to use that term here.

First of all, assignments are legal in all 50 states. People who are not familiar with the procedure may tell you otherwise, but they ARE LEGAL. The main confusion that they have is that they think you are trying to assign the property without a license. What you are doing is just as you stated. You are assigning your CONTRACT or selling your rights in the contract. Legal.

I am assuming in this question that you are referring to a FSBO (For Sale By Owner). You do not need a realtor. You fill out your PA (Purchase Agreement) putting in the "Buyer" line "Frank Smith and/or assigns" . You find the person that wants to take your place in the deal and you fill out an Assignment Contract with the new buyer and take your contract and Assignment Contract to the title co/escrow co. When I do an Assignment, I actually get my cash or CC from the Assignee when he/she signs the assignment and I am finished. I don't wait until the closing.

This is actually the very same procedure you would use even if your initial contract was with a realtor. The realtor does not have to be involved in the assignment after the contract (PA) is signed. Have your Assignee sign, get your money and take the assignment contract to the title co/escrow co where the escrow will have already been opened by the realtor.

Make sense?

Karen

PS Frank, you may want to fill out your bio more fully. That is one of the first steps to becoming more professional and getting out of that N word mindset.

I posted this before but am not sure I did in the correct place. . . sorry. . . do any of you know if I need to disclose that I am a licensed real estate agent if I'm finding my properties through a resale agent. I'm in new home sales and I don't have access to the MLS so I would need to find my properties through an agent.

There is something called "transactional funding" that is insurance against this type of thing. Most transactional funding companies will charge you a fee, usually a percentage amount, for the funding the deal between when you close and when the other person closes. (I have heard of them funding for 30 days but most will do max 1 week)

When you are going to make a substantial profit on a deal don't feel bad about the amount you are making. If the other party is good with making a deal for a house below market value then you should be too. Do not worry that you are making $20,000 for a house that they are getting for $30,000 below value. They can refinance in 3 months to get $20,000 back out and they have the house after you close. After you close all you have is a check. Feel good about your profits AND finding a deal for someone else.

I am fairly sure that as a licensed REA, that must be disclosed any time you are involved in any type of RE deal.

Karen

Eve,
Your BIO is not filled out, so we do not know from where you hail. I can tell you that in Texas (and I would think most other States as well), YOU MUST FULLY DISCLOSE that you are a LICENSED REAL ESTATE AGENT IN THE STATE OF TEXAS on any real estate transaction.

On the Texas TREC 1 - 4 Residential contract, this is usually disclosed in paragraph 11. SPECIAL PROVISIONS.

Good luck.
--Walter

on an assignment deal, how does my realestate agent get her payment ? what is the proper method to handle this situation?

The REAs are all paid by the seller. The seller usually pays 6% commission (yes, this can be negotiated) that is split between the buyer's agent and the seller's agent.

Karen

Tom, your purchase agreement should list the name of your RE Agt as a party representing you in the transaction (it does on the standard Texas TREC contract). Therefore your RE Agt is a part of the contract and will get paid at closing by the Title Company (or RE Attorney) who handles the closing when your Buyer (assuming you are Wholesaling) closes.

Remember your Buyer actually is the one who performs on the original sales contract that you entered into with the Seller. The RE Agt does not get paid on your 'Assignment Contract'; they get paid on your Purchase contract with the original Seller (hope that makes sense).

--Walter

If it is to be, it is up to me. -unk

Of course... what was I thinking...lol thanks guys for helping me out on that one...agents are paid by the seller...duh

i have been investing in Nashville for a year. I have had a couple deals fall thru and had a couple potential buyers question my methods but a deal is a deal. I have only worked thru brokers and have not seen every deal.
My first "legal" assignment closes 10/12 when I am back in TN.
i have another deal on a duplex set to close late in the month. Deals are great. Passive income is better! Flip, assign, hold! you can change your entire world and those you care about if your "Why" is strong enough.
Stay with it. Be smart. Never give up!

Tom & Karen,

Actually just one little fine point here.....Agents are not paid "by the Seller"; they are actually paid by the Buyer. The Buyer (generally speaking) is the (only) one who is bringing any money to the table. [now I know there are times when a Seller must bring money to the table, but that is usually not the case].

I realize that the Seller ends up with less money in their pocket on the HUD 1 due to (Seller) expenses and all, but as the Buyer (or Buyer's lender) is bringing the money to the table, they are the ones actually paying the Agents (both sides).

Great info!..Thx for sharing

Although you're correct that the money brought to the table is paying for the house and commissions, it is the Seller that is paying commissions to the agents.

The listing agreement signed by the Seller includes a paragraph that outlines commissions to be paid (usually percentages of the sale), which are the Seller's responsibility. It also includes a statement that if an able and willing buyer is brought to the table and the Seller doesn't go through with the sale, the Seller still owes commissions.

Sellers are contractually bound to pay commissions.

Can she decide to go ahead and assign it instead of using the realtor? Or would that be a breach of her contract with the realtor?

Maybe I should already know the answer to this?

Thanks alot i was trying to figer out what a double closeing was

My husband and I have been working on a deal with an individual we met through a friend. We were told a couple months ago he owned 5 or more properties and he wanted to get out of the business and sell some of them. My husband has been working with the seller quite a bit. The seller had one of the homes listed with an agent before we ever met him and he just found out this week that that property sold. So, now we are down to four houses. We gave him a price after figuring out the comps on Trulia, Prop Trend, Zillow and the property tax statements. The properties together are valued $276,243. We offered the $168,000 and are wait1ng to hear back. We have a cash buyer we told we wanted $188,000 for them. What's next??? We want to make sure we do this assignment/bird dog thing right. The buyers want to go through the properties next Tuesday!!

Sometimes, people will not sell their homes at a discount regardless of what the buyer plans on doing with it even if the seller or their house is in a distressed situation. I've had clients that won't even discount their home % grand when they are facing foreclosure, have had a death in the family and they are ill, and those are a lot of reasons to sell (to answer the original question). One of the biggest reasons why they do not do so is that they have an emotional attachment to the home, and that emotional attachment outweighs all other considerations even potential foreclosure and the possibility of becoming homeless, so as investor or a real estate agent, you move on to the next deal. If people do not want help, there is little you can do for them.

You are correct that the buyer is the one bringing the money to the table, but as Pippa has stated, the commission for the realtors is coming out of the monies that the seller would receive. The buyer's price is the buyer's price, whether there is a realtor or not. Therefore, the seller is the one paying the commission.

Karen